SP 500 FUTURES Building M or W – Bullish or Bearish?

  • Market was up, but turned lower because of the ‘tax-the-rich’ comment.
  • Looks like a forced sell-off.  Market is looking for a reason to correct.
  • Nonetheless, I think the sell-off is short-lived.
  • The overall market sentiment remains bullish.
  • In addition, the ‘tax-the-rich‘ policy is difficult to get enforced.

On the daily Renko chart, is it building an M or a W?  Today’s upward momentum was terminated by Biden’s ‘tax-the-rich’ comment.  The index was so close to the all time high and all of a sudden, it quickly dropped 30+ points.  It’s back to the all-too-familiar 4110 – 4140 support zone.  If this support zone does not hold, it will test the next level of support between 4060 and 4090.

It will be a W formation if 4110 support holds.  

Market momentum is still high and bullish.

There is not very much negative news out there.

 

 

 

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